Investments in Manufacturing Collapse Due to the COVID-19 Crisis. Results of the WIFO Spring 2020 Investment Survey

The COVID-19 crisis has a profound impact on domestic investment activity. An estimate based on firm-level data from the WIFO-Investitionstest (investment survey) shows a reduction of real investment in 2020 in the manufacturing sector by 19.5 percent. Small and medium-sized companies are planning higher reductions in their investments, while large companies are more likely to implement their original investment plans. Especially manufacturers of intermediate products and durable consumer goods will reduce their investments. The investments of manufacturers of investment goods are slightly increasing. For Austria's overall economy, WIFO expects a real decline in gross fixed capital formation of 6.5 percent in 2020.